When organizing your records, play it safe -- for the sake of any potential IRS run-ins. If you are holding any tax documentation, and are asking yourself, "Should I keep this or throw it away?" err on the side of caution and file that sucker. ... See MoreSee Less
2020 brought many businesses into an even more digital approach to running their businesses. But it wasn't just necessity that incentivized this shift.
One study, by Nucleus Research, found that small businesses that go paperless see a return of more than $8 in cost savings for each $1 they spend on digitization. That adds up in a hurry.
Other studies have shown that paper creates more data breach risks than being digital. In large companies, paper records account for nearly 2/3 of all data breaches, according to the US Department of Health and Human Services.
So how do you start going paperless? To start with, consider the low-hanging fruit:
- Start sending invoices to customers by email. - Use electronic funds transfers in lieu of checks. - Use cloud-based document sharing services within the office. - Use software to set employee schedules and replace the old time clock.
What other methods have you found to be effective in your business? ... See MoreSee Less
For 2021, you may be eligible to claim as much as $16,000 in qualifying dependent care expenses that you pay in order to go to work. This can yield as much as an $8,000 tax credit -- subject to a bunch of rules and limitations, of course.
So if you pay child or dependent care expenses that are directly related to your ability to be employed, let’s have a discussion about helping you max out this valuable tax credit. ... See MoreSee Less
According to multiple sources, as well as our oh-too-personal experience, the IRS has run at a limited capacity during 2020, and even into 2021, which has caused a major backlog in its ability to process tax returns and send out stimulus checks. Although the IRS is now running at an increased capacity and processing mail, tax returns, payments, refunds and correspondence ... the pandemic continues to cause delays in many services.
The IRS said it's issuing most refunds "in less than 21 days", but many are taking longer. Some 2020 returns require review -- such as determining recovery rebate credits, amounts for the first and second stimulus checks or figuring earned income tax credit and additional child tax credit amounts. We have seen refunds taking longer even when this is NOT the case.
Some of the new Child Tax Credits will come in the form of advance payments, via direct deposit or paper check. Taxpayers can expect to receive up to $300/month per qualifying child on July 15, August 13, September 15, October 15, November 15 and December 15.
The remainder of the credit can be claimed on 2021 tax returns. ... See MoreSee Less